The 2024 Integrated Report highlights a decade of Philip Morris International's journey towards a smoke-free future, showcasing its transformational journey and key sustainability achievements, as clearly reflected in its Sustainability Index performance for the period 2022-2024.

Dubai, United Arab Emirates – Philip Morris International (PMI) recently released its sixth annual Integrated Report, marking the company’s ten-year journey toward a new approach to business management, placing sustainability at the core of its operations. The report showcases the company’s ongoing efforts to create long-term value for its shareholders and other stakeholders, while relentlessly pursuing smoke-free alternatives to accelerate the cessation of smoking.

“Our 2024 Integrated Report celebrates a landmark year, marking the 10th anniversary of the launch of IQOS, VEEV, and ZYN,” said Jacek Olcsak, CEO of Philip Morris International. “It also highlights our progress toward one of the most ambitious business transformations in recent history.”

He added: “By the end of 2024, our efforts to expand access to smoke-free products have enabled us to offer our products in 95 markets around the world, reaching approximately 38.6 million adult users, demonstrating our unwavering commitment to sustainability and business transformation. These achievements reinforce our great optimism as we continue to work to deliver long-term value with a primary focus on addressing the impacts of our products and operations. This will not only maintain the momentum of our operations, but will also accelerate our pace to achieve a number of our ambitious goals, which a few years ago seemed almost impossible.”

The 2024 Integrated Report highlights Philip Morris International's sustainability strategy, which focuses on two distinct thematic paradigms: those related to its products (what the company produces), which is a significant part of the Product Impact pillar, and those related to its business processes (how the company produces), which is part of the Operational Impact pillar. The report reviews the company's sustainability performance within a comprehensive framework of five key pillars, including compliance and risk mitigation, as well as operational efficiency, innovation, and meaningful impact. The report emphasizes that regulatory compliance forms the foundation, while risk management ensures business resilience. It also highlights how this approach streamlines operations to enhance productivity and profitability, and links sustainability with long-term business objectives to enhance innovation and competitive value. Ultimately, it aims to lead a fundamental transformation in the sector by influencing standards, engaging in policy formulation, and driving systemic change to redefine market expectations.

“Transformation rarely follows a straight line, but our experience in 2024 reflects a fundamental truth: achieving a smoke-free future requires a collective effort beyond our direct control,” said Emmanuel Babo, Chief Financial Officer, Philip Morris International. “Our smoke-free business accounted for approximately 39% of PMI’s total net revenue in 2024, with significant acceleration in revenue and profit growth. Competing in the cigarette market while transforming it is not a contradiction; it is a necessary stage in our transformation journey. Our integrated approach has linked financial success to positive impact and charted a new path for us to continue investing in the future. We are confident that our financial strength, coupled with our leadership in sustainability, is the right path forward.”

Product and Operational Impact: Performance Highlights

• Six markets where smoke-free products generated more than 75% of annual net revenue.
• Cumulative investment of over US$14 billion in smoke-free products since 2008 (2023: US$12.5 billion)
• 99% of total shipment volume is covered by programs to prevent youth from accessing indirect retail channels (98%: 2023)
• 99% of contract farmers who supply tobacco to Philip Morris International receive a living income (96%: 2023)
• 10 human rights impact assessments have been conducted since 2018 in countries most at risk (8:2023)
• 61% of Philip Morris International's manufacturing facilities are carbon neutral (2023: 43%)
• The first pre-certified Environmental Product Declarations (EPDs) have been published on the IQOS ILUMA i series of devices.

“We recognize the importance of setting ambitious yet realistic goals for our business success. Our Sustainability Index has proven effective in ensuring that our ambitions are balanced with the objectivity of our metrics, while our enhanced non-financial data governance helps us report accurately and consistently,” said Jennifer Mottles, Chief Sustainability Officer at Philip Morris International. “Our commitment to sustainability is inseparable from ensuring the future of our business, delivering tangible impacts within our control and scope, and contributing to a transformation that extends beyond our company.”

The 2024 Integrated Report is based on the Global Reporting Initiative (GRI) 2021 Global Standards and relevant standards for each topic. The report takes into account guidance from the International Sustainability Standards Board (ISSB) of the International Financial Reporting Standards (IFRS) Foundation, including the SASB Standards, Integrated Thinking Principles, and Integrated Reporting Framework. The Project Management Institute (PMI) SASB Index and GRI Index, which also contribute to the principles and standards of the United Nations Global Compact (UNGC), are available at pmi.com. The report is accompanied by the PMI 2024 Sustainability KPI Protocol, which provides a clear explanation of how we define and measure progress on each sustainability KPI.

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